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The next couple of years will see the introduction of key financial reforms: the adoption of international financial reporting standards (IFRS) in Saudi Arabia, and the launch of value-added tax (VAT) in the GCC in 2018.
Cloud-based applications like smart assistants will prove invaluable to CFOs wishing to quickly and fully absorb these important changes.
VAT and IFRS: a moving business landscape
In Saudi Arabia, the adoption of VAT from 2018 and, this year, of international accounting standards for all listed companies, means that Saudi companies can and will be compelled to compete on a global level.
Applying IFRS will have a direct impact on companies' credit ratings, analysts' assessments and dividend payment policies; resulting in leaner, more profitable businesses.
Undoubtedly adopting IFRS is a positive step in KSA's programme of reform (Qatar, Bahrain and more recently, the United Arab Emirates have already adopted IFRS).
However, the move towards a single set of accounting standards mean that chief financial officers (CFOs) and those that work in the finance function face unprecedented change in the business landscape. To cope with the great shift ahead the only path to take is that of further digitalisation.
Digital improvements to facilitate reforms
Previously, many software solutions were unaffordable for smaller organisations but now with the use of integrated cloud-based software they are accessible even for start-ups.
Smaller enterprises that use cloud-based systems will be ahead of the game when the IFRS for SMEs and unlisted companies is introduced. Cloud-based systems can provide an effective support in the implementation of IFRS since they are scalable, aid transparency and are accessible across business functions.
Although email remains one of the most critical channels for business communication, it is increasingly less secure and many regulators do not allow sensitive documents to be shared via email as they can be exploited for phishing attacks or hacked.
It may be advisable to establish secure online channels via the cloud as a safer way of transmitting data, since the security of these services is often heavily tied into how the particular provider has implemented and maintained the service.
Smart finance assistants
While cloud-based systems allow for large volumes of data, the rapidly increasing volumes now available mean that quality data analysis can only be effective with the use of sophisticated artificial intelligence (AI) solutions. Powered by AI, smart digital assistants will further transform the way we do business across many sectors.
"AI and smart digital assistants will be needed to bridge the gap in competence in the financial sector," remarks Wael El Turk, CFO, Blominvest, a Saudi-based investment bank.
Smart digital assistants are intelligent cloud-based applications that can automate routine time-consuming business tasks through conversation, text or code block. Powered by huge amounts of data and using AI and machine learning capabilities, these 'chatbots' ingest data about users to deliver targeted information and offer customised recommended actions in real-time.
Chatbots are relatively simple to programme; no need to use Java, PHP or JavaScript. They can be visually programmed on to existing chatbot development platforms and they can interface with different messaging systems. Accounting chatbots can track expenses, make purchases, send invoices, transfer money and schedule meetings.
New solutions planned for 2017 include end-to-end payments and full supply chains. True, they are new to the market and while the general consensus is that in many offices they are not a reality, in time, smart digital assistants could prove very useful to businesses in the Middle East.
"Maintaining pace with digital transformation will help us stay ahead of the competition and we look forward to when Arabic-based digital assistants become available," says El Turk.
© Oracle 2017
